Scalper1 News
Major averages rose yesterday on lower volume as institutions continued to express reluctance at putting down big bets before the market’s trendless ways are over. The market is simply in what is so far a short reaction bounce after the S&P 500 found support along its 200-day moving average while the NASDAQ had undercut its prior early July lows, putting the indexes in a logical position for a rally attempt. With futures trading lower this morning, that rally attempt is in jeopardy. Futures are down sharply on the surprise move by Chinaâs central bank by devaluing its tightly controlled currency, triggering the largest one-day loss for the yuan in two decades, in an effort to boost flagging exports and spur growth in the worldâs second-largest economy. China’s central bank stressed the move was a one-off depreciation but seems suspect as Chinaâs Real Effective Exchange Rate (REER), as calculated by the [Bank for International Settlements], has risen by some 14% in the past year making todayâs 2% drop relatively small. Given China’s flagging economy, analysts are concerned it could be the start of a new currency war which could delay the Fed from hiking interest rates. Wearable camera maker GPRO had a pocket pivot yesterday. ROE 59.4%, earnings and sales are soaring, institutional sponsorship has grown over the last 3 quarters. GPRO is trading well off its highs so could experience some overhead resistance as it makes its way higher. Scalper1 News
Scalper1 News